Malaysia Airports : Financial Statements Report 2023

FINANCIAL

STATEMENTS

TA B L E O F CO N T E N T S

Directors' Report	1-6
Statement by Directors	7
Statutory Declaration	8
Independent Auditors' Report	9-15
Statements of Profit or Loss	16
Statements of Comprehensive Income	17
Consolidated Statement of Financial Position	18-19
Statement of Financial Position	20-21
Statements of Changes In Equity	22-23
Statements of Cash Flows	24-26
Notes to the Financial Statements	27-178

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DIRECTORS' REPORT

The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 December 2023.

Principal activities

The principal activity of the Company is investment holding.

Details of the subsidiaries are disclosed in Note 15 to the financial statements.

There have been no significant changes in the nature of the principal activities during the financial year.

Information in respect of the Group's Operating Agreements, Land Lease Agreement and Development Agreement with the Government of Malaysia ("GoM") and the foreign subsidiary's Implementation Agreement, including both the obligations and operations are disclosed in Notes 1.2, 1.3 and 1.4 to the financial statements.

Results
		Group	Company
		RM'000	RM'000
Profit	net of tax	543,167	214,542
Profit	attributable to:
Owners of the Company	543,167	214,542

There were no material transfers to or from reserves or provisions during the financial year, other than as disclosed in the financial statements.

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature, other than those as disclosed in the notes to the financial statements.

Share capital

On 26 May 2023, the Company increased number of its paid-up share capital to 1,668,554,432 (excluding 1 Special Rights Redeemable Preference Share) by the issuance of 9,362,604 new ordinary shares. The increase arose from the Dividend Reinvestment Plan ("DRP") relating to electable portion (for those shareholders electing for the re-investment) of the single-tier final dividend of 3.91 sen, on 1,659,191,828 ordinary shares for the financial year ended 31 December 2022, as disclosed in Note 26.

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FINANCIAL STATEMENTS

ANNUAL REPORT 2023

DIRECTORS' REPORT

Dividends

The amount of dividends declared or paid by the Company since 31 December 2022 were as follows:

			RM'000
In respect of the financial year ended 31	December 2022 as reported in the directors' report of that year:
Single-tier final dividend of 3.91 sen, on	1,659,191,828 ordinary shares,	declared on 28 February 2023 and
paid on 25 May 2023 and partially re-invested on 26 May 2023		64,876
A single-tier final dividend of 3.91 sen per	ordinary share in respect	of the	financial year ended 31 December 2022 was approved
by the Board of Directors on 28 February 2023. The final dividend	amounting to RM64,875,586 of which RM8,137,007 was paid

on 25 May 2023 and the remaining balance of RM56,738,579 less RM329,711 share issuance expenses arising from the Dividend Reinvestment Plan ("DRP"), was re-invested on 26 May 2023, as disclosed in Note 11.

On 29 February 2024, the Company declared a single-tier final dividend in respect of the current financial year ended 31 December 2023 of 10.80 sen per ordinary share amounting to dividend payable of RM180,203,879 (based on 1,668,554,432 ordinary shares issued as at 31 December 2023).

Directors

The names of the directors of the Company in office since the beginning of the financial year to the date of this report are:

Tan Sri Datuk Zainun binti Ali Dato' Ir. Mohamad bin Husin

Dato' Normah binti Osman (resigned on 25 April 2023 and re-appointed on 20 October 2023) Dato' Zamzuri bin Abdul Aziz (appointed on 5 June 2023)

Datuk Amran Hafiz bin Affifudin (appointed on 1 September 2023) Dato' Seri Ir. Koe Peng Kang (appointed on 12 December 2023) Cheryl Khor Hui Peng

Ramanathan a/l Sathiamutty Rohaya binti Mohammad Yusof

Mohd Nizam bin Mohd Khir [alternate director to Dato' Zamzuri bin Abdul Aziz] (appointed on 5 June 2023) Dato' Sri Iskandar Mizal bin Mahmood (resigned on 24 October 2023)

Wong Shu Hsien (resigned on 1 September 2023)

Datuk Johan bin Mahmood @ Johan Mahmood Merican (resigned on 22 May 2023) Tan Sri Mohamad Salim bin Fateh Din (resigned on 22 May 2023)

Datuk Azailiza binti Mohd Ahad (resigned on 19 May 2023)

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DIRECTORS' REPORT

Directors of subsidiaries

The following is a list of directors of the subsidiaries (excluding directors who are also directors of the Company) in office since the beginning of the financial year to the date of this report:

Ahmad Farid bin Ahmad

Azlin binti Ismail @ Shamsuddin

Hadiyatul Hayati binti Khalil (appointed on 12 October 2023)

Mohamad Radzuan bin Mazlan

Mohamed bin Rastam Shahrom

Gordon Andrew Stewart (appointed on 12 October 2023)

Hani Ezra binti Hussin

Megat Ardian Wira bin Mohd Aminuddin

Mohd Arif bin Jaafar

Nornajihah binti Ismail

Randhill Singh a/l Amrick Singh

Ahmad Tarmizi bin Mohd Hashim

Fatima Darwish A D Al-Darwish

Amer S B Sbeihi

Abdurrahman Seref Can

Halil Ucarer

Shameem Kureemun

Georges Valery Magon

Mohammad Nazli bin Abdul Aziz (resigned on 18 September 2023)

Datin Suryani binti Ahmad Sarji (resigned on 6 September 2023)

Mohd. Asrul bin Ab. Rahim (resigned on 6 September 2023)

Stien Van Lutam (resigned on 30 June 2023)

Directors' benefits

Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors as shown in Note 8 to the

financial statements or the fixed salary of a full-time	employee of	the Company) by reason of a contract made by the Company or
a related corporation with any director or with a firm	of which the	director is a member, or with a company in which the director
has a substantial financial interest.

The directors and officers of the Group and of the Company are covered by the Directors and Officers liability insurance for any liability incurred in the discharge of their duties, provided that they have not acted fraudulently or dishonestly or derived any personal profit or advantage. The insurance is maintained on a group basis and the total premium paid by the Group during the current financial year amounted to RM193,135.

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FINANCIAL STATEMENTS

ANNUAL REPORT 2023

DIRECTORS' REPORT

Directors' remuneration

The details of the directors' remuneration paid or payable to the directors of the Group and of the Company during the financial year are as follows:

	Group	Company
	RM'000	RM'000
Fees	1,428	1,101
Salaries and other emoluments	2,455	2,372
Defined contribution plans	244	244
Estimated money value of benefits-in-kind	258	258
	4,385	3,975

Directors' interests

According to the register of directors' shareholdings, none of the directors in office at the end of the financial year had any interest in shares in the Company or its related corporations during the financial year.

Other statutory information

1. Before the statements of profit or loss, statements of comprehensive income and statements of financial position of the Group and of the Company were made out, the directors took reasonable steps:
2. 1. to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that there were no known bad debts and that adequate provision had been made for doubtful debts; and
   2. to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary course of business have been written down to an amount which they might be expected so to realise.
3. At the date of this report, the directors are not aware of any circumstances which would render:
4. 1. it necessary to write off any bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; and

(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.

1. At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

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DIRECTORS' REPORT

Other statutory information (cont'd.)

1. At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading.
2. At the date of this report, there does not exist:

(i)	any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which
	secures the liabilities of any other person; or

1. 1. any contingent liability of the Group or of the Company which has arisen since the end of the financial year.
2. In the opinion of the directors:
3. 1. no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve

months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet their obligations when they fall due; and

1. no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the

Group and of the Company for the financial year in which this report is made.

Subsequent events after the reporting date

Subsequent events after the reporting date are disclosed in Note 37 to the financial statements.

Auditors

The auditors, Ernst & Young PLT, have expressed their willingness to continue in office.

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FINANCIAL STATEMENTS

ANNUAL REPORT 2023

DIRECTORS' REPORT

Auditors (cont'd.)
The details of the auditors' remuneration for the financial year are	as follows:
	Group	Company
	RM'000	RM'000
Auditors' remuneration:
Statutory audit
- Ernst & Young PLT	1,368	490
- Other than Ernst & Young PLT	295	24
Other services
- Ernst & Young PLT	192	39
- Other than Ernst & Young PLT	204	-
	2,059	553

Board in accordance with a resolution of the directors dated 29 February 2024.

Ali

Kuala Lumpur, Malaysia

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STATEMENT BY DIRECTORS

Pursuant to Section 251(2) of the Companies Act, 2016

We, Tan Sri Datuk Zainun binti Ali and Cheryl Khor Hui Peng, being two of the directors of Malaysia Airports Holdings Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 16 to 178 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2023 and the financial performance and the cash flows of the Group and of the Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 29 February 2024.

Ali

Kuala

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FINANCIAL STATEMENTS

ANNUAL REPORT 2023

STATUTORY DECLARATION

Pursuant to Section 251(1)(b) of the Companies Act, 2016

I, Mohamed bin Rastam Shahrom (MIA Number: 24197), being the officer primarily responsible for the financial management of Malaysia Airports Holdings Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 16 to 178 are, to the best of my knowledge and belief, correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the above named Mohamed bin Rastam Shahrom at Kuala Lumpur in the Federal Territory on 29 February 2024.

Before me,

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